FRANKFURT: German sportswear giants Adidas and Puma are planning cost-cutting measures, including potential job cuts, to improve profitability and navigate post-crisis challenges.
Adidas revealed it is reassessing its business structure to ensure “long-term success,” which could impact up to 500 positions at its Herzogenaurach headquarters, according to German media. CEO Bjorn Gulden is focused on simplifying the company following controversies, including the fallout from severing ties with Kanye West (Ye) after his anti-Semitic remarks. Despite a five-fold profit increase in 2024, Adidas aims to boost its profit margin from 5.6% to 10%.
Meanwhile, Puma reported a decline in net profit to €282 million in 2024, prompting plans to cut costs, including “personnel expenses.” Its shares plummeted by 18% following the announcement.
Both companies are striving to recover market confidence, with Adidas targeting streamlined operations and Puma addressing weaker-than-expected earnings.